Numerous New Precious Metal-Rich VMS Targets Emerge Across Eskay Mining's District Land Holdings

Rhea-AI Summary

Eskay Mining Corp. (OTCQB:ESKYF) announced promising results from its 2020 stream sediment sampling program, revealing new precious metal-rich VMS targets across its 526 sq km land holdings in British Columbia. Analysis highlighted significant BLEG gold anomalies, particularly on the 100% owned Corey property, indicating potential for district-scale discoveries. Notably, multiple catchments displayed high priority anomalies correlating with Eskay Creek style mineralization, prompting plans for further exploration and drilling in 2021.

Positive

• Significant BLEG gold anomalies identified, especially on the Corey property.
• New model of tectonic architecture suggests high potential for VMS mineralization.
• Multiple high-priority exploration targets established for follow-up in 2021.

Negative

• None.

TORONTO, ON / ACCESSWIRE / February 25, 2021 / Eskay Mining Corp. ("Eskay" or the "Company")(TSXV:ESK)(OTCQB:ESKYF)(FRA:KN7)(WKN:A0YDPM) is pleased to announce that its stream sample analytical results highlight many new high priority precious metal-rich volcanogenic massive sulphide ("VMS") targets across its 526 sq km land holdings immediately south and east of the Eskay Creek mine. Stream sediment samples were collected as part of the Company's 2020 exploration program and the fine fraction was analyzed using bulk leach extractable gold ("BLEG") methodology. Multi-element analyses were also performed. The accompanying maps (Figures 1-5) show catchment results for gold ("Au"), silver ("Ag"), arsenic ("As"), mercury ("Hg") and antimony ("Sb"), respectively, and discussion points below correspond to the numbers shown on these maps. Discussion below centers on

Reinterpretation of the Tectonic Architecture of the Eskay Mining District and Discussion of Notable BLEG Anomalies:

• Eskay Mining Corp.'s exploration team recently synthesized a new model of the tectonic architecture of the Eskay Mining District. A picture has now emerged of three anticlines, the central Eskay Anticline, the Eastern Anticline and the Western Anticline, wholly or partially underlying Eskay's property (Figure 6). Major ramp-type thrust faults are associated with each anticline.
• This new model suggests the flanks of each of these three anticlines are prospective for Eskay Creek style VMS mineralization where favourable strata are exposed. Several newly recognized trends along these flanks are evident in recent BLEG, and multi-element geochemical anomalism support this new interpretation as discussed below (numbers below correspond to those seen in Figures 1-5):

1. Very strong BLEG Au values come from multiple catchments within an approximately 6 km long, 3 km wide northwest-oriented zone on Eskay Mining Corp.'s 100% owned Corey property. While several known VMS prospects occur within this area, the size of this anomaly extends beyond what is currently perceived. This anomaly is open in multiple directions, and occurs where the east limb of the Eskay Anticline grows close to the west limb of the Eastern Anticline. This anomaly is quite profound and the strongest yet discovered on the property. Arsenic is strongly anomalous, Ag and Sb are moderately anomalous, and Hg is anomalous in the easternmost catchments in this area. This multi-element signature supports the view that this large gold anomaly is indeed driven by Eskay Creek style mineralization. Interestingly, the rocks in this area show moderate levels of thermal metamorphism not seen further north at the TV-Jeff or SIB-Lulu deposits. Eskay sees this area as a high priority for follow up exploration including SkyTEM and drilling in the upcoming exploration season.
2. Strong to moderate BLEG Au values come from three catchments occurring along the western flank of the Eskay Anticline in a position immediately south of a place where Bowser Lake Formation structurally covers or masks the prospective Hazelton Group rocks (zone of anomalously low Au values in blue). Eskay interprets this anomaly to be the re-emergence of the west flank-hosted SIB-Lulu trend. Modest Ag, As, Hg and Sb anomalism is associated with Au. This area will be the focus of surface and SkyTEM exploration during the upcoming exploration season. Eskay hopes to identify drill targets in this area from this work.
3. A very strong to strong multi-catchment BLEG Au anomaly emerged in an area at the north end of the Eastern Anticline. Eskay Mining Corp. is particularly intrigued by this anomaly as it occurs in a similar respective position as the Eskay Creek deposit at the north end of the Eskay Anticline. Arsenic is strongly anomalous and Ag, Hg, and Sb are moderately anomalous in these catchments - a sign this anomaly may be driven by undiscovered Eskay Creek style VMS mineralization. The Company sees this as a high priority target and plans aggressive early field exploration here including SkyTEM coverage with the aim of identifying drill targets to be included in the 2021 drill schedule.
4. Moderate BLEG Au anomalism occurs in two catchments midway along the east flank of the Eastern Anticline. This area is elevated and has considerable ice cover, but its position on the east flank suggests there may be VMS potential here. Ag is moderately anomalous in one drainage and Sb is moderately anomalous in both. In 2021, the Company plans to examine this area and the intervening ground down to target 1 to further evaluate the potential of the Eastern Anticline.
5. A drainage along the western flank of the Eastern Anticline displays very strong As, Hg and Sb anomalism as well as moderate Ag anomalism. Although gold is not anomalous, this strong pathfinder response suggests the potential for Eskay Creek style VMS mineralization in this area. Given the close proximity to TV-Jeff to the south and the presence of SkyTEM anomalies in this area, the Company plans aggressive field examination to discover what is driving this notable anomaly.
6. Strong BLEG Au and moderate Ag anomalism occurs in two catchments along the southern part of the east flank of the Eastern Anticline. Moderate As and Sb are associated with precious metals. Like Target 4 discussed above, the Company plans to examine this area and the intervening ground to Target 1 further to the northwest to better evaluate the potential of the Eastern Anticline.
7. A single catchment strong BLEG Au anomaly occurs between the west flank of the Eskay anticline and the east flank of the Western Anticline. Ag, As, Sb and Hg are all moderately anomalous as well. The Company plans field examination here in 2021 and is hopeful this will prove to be confirmation of the presence of precious metal-rich VMS along the Western Anticline. Upcoming SkyTEM surveys will cover this area. To the north from this location, barren Bowser Lake Formation rocks cover prospective Hazelton Group rocks for much of the length of this anticline.
8. A single-catchment moderate BLEG Au anomaly occurs within the North Mitchell claimblock. While this anomaly does not share the same geochemical signature of the Eskay Creek type deposits, it occurs in close proximity to Tudor Gold's Treaty Creek discovery as well as Sea Bridge Gold's KSM deposits. The Company therefore thinks there may be potential for intrusion/porphyry related gold mineralization on this strategic landholding. Follow up examination is planned during the 2021 field campaign.

"Our 2020 BLEG sampling program paid off in spades," commented Dr. Quinton Hennigh, director and technical advisor to Eskay Mining. "Numerous new targets have emerged across our large land holding. Most notably, we see a very large open gold anomaly on our 100% owned Corey ground, one that displays geochemistry commensurate with Eskay Creek style mineralization. We also see a very robust Eskay Creek type anomaly at the north end of the Eastern Anticline, perhaps telling us there is potential for significant discovery in this unexplored area. We also see gold anomalism in numerous locations along the flanks of the three anticlines that underlie our project. In short, we see district scale potential across our property and are very excited to get into the field to follow up on these very promising BLEG results."

QA/QC, Methodology Statement:

BLEG catchments and sample locations were chosen to avoid contamination by material from outside the desired catchment. Fine material was collected from streams and stream banks by shovel and 30 mesh sieve and placed in a clean 5-gallon bucket with stream water. Aluminum sulfate flocculent was added to the water to settle the fines out of suspension before water was decanted from the bucket. Samples were placed in millipore bags, allowed to dry, and submitted to ALS Geochemistry in North Vancouver, British Columbia for clay separation and analysis. As part of QA/QC protocol, gold standard material was mixed with powdered montmorillonite clay to predetermined gold concentrations, similar to values expected for BLEG analysis. Three standard samples, and two blank samples were included with each batch of 50 BLEG samples. Field duplicate samples were taken at pre-determined locations.

Clay fraction from the samples were analyzed for gold by cyanide extraction with ICP-MS finish. Multi-element ICP-MS analysis was performed on bulk sample material.

Dr. Quinton Hennigh, P. Geo., a Director of the Company and its technical adviser, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.

About Eskay Mining Corp:

Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the "Golden Triangle," approximately 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (130,000 acres).

All material information on the Company may be found on its website at www.eskaymining.com and on SEDAR at www.sedar.com.

For further information, please contact:

Mac Balkam
President & Chief Executive Officer
T: 416 907 4020
E: Mac@eskaymining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

(Figure 1: Plan view of BLEG Au catchment results across Eskay Mining's land holdings.)

(Figure 2: Plan view of BLEG Ag catchment results across Eskay Mining's land holdings.)

(Figure 3: Plan view of BLEG As catchment results across Eskay Mining's land holdings.)

(Figure 4: Plan view of BLEG Hg catchment results across Eskay Mining's land holdings.)

(Figure 5: Plan view of BLEG Sb catchment results across Eskay Mining's land holdings.)

(Figure 6: Schematic cross sectional view of the three anticlines wholly or partially underlying Eskay Mining's land holdings.)

SOURCE: Eskay Mining Corp.

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FAQ

What recent exploration results did Eskay Mining Corp (ESKYF) announce?

Eskay Mining Corp reported new precious metal-rich VMS targets from its 2020 stream sediment sampling program, highlighting significant BLEG gold anomalies.

How large are Eskay Mining Corp's land holdings?

Eskay Mining Corp holds 526 sq km of land, primarily in the Eskay Creek mining district in British Columbia.

What methods were used in Eskay Mining's sampling program?

The sampling program utilized bulk leach extractable gold (BLEG) methodology and multi-element geochemical analyses.

What plans does Eskay Mining Corp have for 2021 based on the recent results?

Eskay Mining plans to conduct further exploration including SkyTEM surveys and drilling to follow up on high-priority targets identified in the recent sampling.

What does the new tectonic model suggest for Eskay Mining Corp's exploration?

The new tectonic model suggests three anticlines are present, indicating prospective areas for Eskay Creek style VMS mineralization.